Background on Key Players
The French Wine and Spirits Exporters Federation (FEVS) has expressed concern over the potential “brutal” impact of US tariffs and the falling US dollar. This warning comes as the European Union (EU) and the United States recently reached a trade agreement, implying that most EU exports will face a 15% tariff in the US.
Impact on French Wine Industry
Gabriel Picard, president of FEVS, lamented in a statement that the combined effect of tariffs and the weakening dollar could lead to a 25% reduction in wine and spirits sales in the US, resulting in approximately €1 billion (US$1.16 billion) in losses. This decline could affect 600,000 jobs within the industry.
EU’s Stance and Negotiations
The EU acknowledged on Thursday that the wine sector might be affected but emphasized ongoing negotiations for exemptions. French Minister of Foreign Affairs, Jean-Noel Barrot, stated that France aims to secure “guarantees” for its wines and spirits.
French Efforts for Exemption
Jean-Marie Fabre, president of the French Independent Grape Growers’ Union, mentioned in an interview with radio RMC that they hope to benefit from an exemption and are urging French political representatives to ensure the European Commission steers negotiations in this direction.
Key Questions and Answers
- What is the concern of French wine producers? They are worried about the “brutal” impact of US tariffs and the falling US dollar on their exports.
- What trade agreement was recently reached between the EU and US? The agreement implies that most EU exports will face a 15% tariff in the US.
- What are the potential consequences for the French wine industry? There could be a 25% reduction in sales, leading to approximately €1 billion in losses and affecting 600,000 jobs.
- How is the EU addressing this issue? The EU acknowledges the potential impact on the wine sector and is negotiating for exemptions.
- What are France’s goals in these negotiations? France aims to secure “guarantees” for its wines and spirits.
- What are French grape growers doing to mitigate the situation? They hope for an exemption and are urging their political representatives to ensure the European Commission steers negotiations in this direction.
